The Mexico Wall And US Taxpaye...

The Mexico Wall And US Taxpayers Money

The United State President, Donald Trump, is facing serious backlash for proposing to build a wall along U.S. southern border wall. This was one of President’s campaign promises.

However, back then Trump said he will make Mexico pay for it. Today, Trump is asking the Congress to approve $5 billion for the wall. In other words, Trump is asking the U.S. tax payers to pay for this ‘wild’ project. Refusal of the Congress to approve the fund led to a government shutdown for several weeks—one of the longest in U.S. history.

Sarah Sanders, the White House press secretary back in December 2018 said that President Trump would likely seek other government funds to pay for the wall. Faced with serious backlash over what has been regarded as reckless project, the U.S. government is trying to explain how Mexico will be the ones paying for the wall.

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Government Logic On Mexico Funding The Wall

According to Sanders, “We’re not asking American taxpayers for that. We are looking at existing funding through other agencies right now that we can draw on to do that in—immediately. The president has been clear that the USMCA deal would provide additional revenue through the deal that would show that Mexico has paid for the wall.”

Source: The Washington Post

The USMCA is a new trade agreement that replaced the NAFTA trade deal.

The USMCA has new rules on trucks and cars as well as IP protection and labor. The USMCA was reached after about a year of negotiations between the three countries (United States, Mexico, and Canada).

What Trump hopes to achieve with the new deal is to have more truck parts and cars produced in North America.

Starting from 2020, a car or truck must have seventy-five percent (an increase from 62.5%) of its components manufactured in either United States, Mexico, or Canada to qualify for zero tariff.

US Border Wall Will Be Funded With Money From Other Agencies

Sanders mentioned that President Trump may look at other agencies to see if they have existing funds which can be used to fund the border wall. However, this appears to be a desperate attempt to divert the attention of taxpayers from reality.

To break it down, any money in any agency’s coffers is also taxpayer’s money.

Many Americans immediately took to Twitter to point out that any idea that the money in the coffers of any agency is not from taxpayers is either misleading or misinformation.

However, Sanders claims that the new deal will lead to the generation of 10,000 new jobs for Americans with an annual salary of $100,000.

According to Sanders, this will also attract 18 percent federal tax rate. Philip Bump of the Washington Post carried out the calculation.

Assuming all the figures goes in favor of Sanders’ claim, it will still take America at least 100 years to pay off the debt for the wall.

Irrespective of how much the USMCA deal favors America, taxpayers are the ones paying for the wall and not Mexico.